S&P ups China Development view to stable

Standard & Poor's said it revised the outlook on its long-term credit ratings on China Development Industrial Bank (CDIB) and China Development Financial Holding Corp. (CDFHC) to stable from negative.

The ratings on CDIB (BBB+/stable/A-2) and CDFHC (BBB/stable/A-3) remain unchanged.

The revision reflects a stabilization of the CDFHC group's management and a firming of the venture capital market, S&P said, noting that frequent management changes in the past had caused uncertainty about the group's strategies and operations.

The agency said the ratings reflect the group's good capitalization and strong position in Taiwan's venture capital sector. However, these strengths are partially offset by the inherent volatility of its business, which is vulnerable to valuation fluctuations, S&P noted.

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